Cruise Industry Overview - 2009 - The Florida-Caribbean Cruise ...
Cruise Industry Overview - 2009 - The Florida-Caribbean Cruise ...
Cruise Industry Overview - 2009 - The Florida-Caribbean Cruise ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Cruise</strong> <strong>Industry</strong> <strong>Overview</strong> - <strong>2009</strong><br />
State of the <strong>Cruise</strong> <strong>Industry</strong><br />
Based on third quarter 2008 results and fourth quarter estimates, we are forecasting that a record 13.2 million passengers<br />
cruised in 2008, an increase of 640,000 guests over 2007, with 10.15 million originating in North America.<br />
Coupled with an annual occupancy percentage that exceeded 104% in 2008, this 5% annual passenger growth for<br />
2008 shows an industry where demand continues to outstrip supply.<br />
In 2008 alone, eight new ships, from Carnival, Celebrity, Holland America Line, MSC <strong>Cruise</strong>s, Pearl Seas, Princess<br />
<strong>Cruise</strong>s and Royal <strong>Caribbean</strong> International, with guest capacities ranging from 210 to 3,642 passengers, sailed the<br />
world’s waters for the first time.<br />
<strong>The</strong> industry’s growth is headlined by the <strong>Caribbean</strong>, which continues to rank as the dominant cruise destination,<br />
accounting for 38.19% of all itineraries in 2008, versus 41.02% in 2007 and 46.69% in 2006. Despite the decrease<br />
in capacity, passenger numbers have continued to increase for the <strong>Caribbean</strong>.<br />
In <strong>2009</strong>, the growth of the cruise industry continues as we enter an era distinguished by fourteen additional innovative,<br />
feature-rich ships, international ports-of-call and convenient departures from proximal embarkation cities. <strong>The</strong><br />
current cruise ship order book extends from <strong>2009</strong> through 2012 and now includes 35 new builds, with 69,200 berths<br />
at a value of nearly $20 billion.<br />
<strong>The</strong> selling environment in <strong>2009</strong> is likely to be a challenge for all providers of goods and services, including travel,<br />
due to the global economic environment. Cautious optimism is the forecast for <strong>2009</strong> following a successful year for<br />
the cruise industry in 2008. Based on known ship additions and deletions in <strong>2009</strong>, the industry forecasts 13.5 million<br />
guests in <strong>2009</strong>, a 2.3% increase over 2008.<br />
Today’s ships offer a new generation of onboard features and a world of innovation, including surf pools, planetariums,<br />
on-deck LED movie screens, golf simulators, water parks, demonstration kitchens, self-leveling billiard tables,<br />
multi-room villas with private pools and in-suite Jacuzzis, ice-skating rinks, rock-climbing walls, bungee-trampolines<br />
and much more. Today’s new ships also offer facilities to accommodate family members of all generations traveling<br />
together, a market that is ideally suited for <strong>Caribbean</strong> cruising. More than 1.6 million children under the age of 18<br />
sailed with their families in 2008.<br />
From a product standpoint, our ships offer an array of feature-rich innovative facilities, amenities and services that<br />
exceed the expectations of a growing population of travelers. Today’s travelers would be hard pressed to not find a<br />
cruise line, ship, stateroom or itinerary that did not offer something for everyone.
FCCA Member Lines<br />
Carnival <strong>Cruise</strong> Lines<br />
Celebrity <strong>Cruise</strong>s<br />
Costa <strong>Cruise</strong> Lines<br />
Cunard Line<br />
Disney <strong>Cruise</strong> Line<br />
Holland America Line<br />
MSC <strong>Cruise</strong>s (USA) Inc.<br />
Norwegian <strong>Cruise</strong> Line<br />
Princess <strong>Cruise</strong>s<br />
Royal <strong>Caribbean</strong> International
What is the FCCA<br />
<strong>The</strong> <strong>Florida</strong>-<strong>Caribbean</strong> <strong>Cruise</strong> Association (FCCA) is a not-for-profit trade organization composed of 10<br />
Member Lines operating more than 100 vessels in Floridian, <strong>Caribbean</strong> and Latin American waters. Created<br />
in 1972, the FCCA’s mandate is to provide a forum for discussion on legislation, tourism development, ports,<br />
tour operations, safety, security and other cruise industry issues. By fostering an understanding of the<br />
cruise industry and its operating practices, the FCCA seeks to build cooperative relationships with its partner<br />
destinations and to develop productive bilateral partnerships with every sector. <strong>The</strong> FCCA works with<br />
governments, ports and all private/public sector representatives to maximize cruise passenger, cruise line<br />
and cruise line employee spending, as well as enhancing the destination experience and the amount of<br />
cruise passengers returning as stay-over visitors.<br />
Member Lines<br />
Carnival <strong>Cruise</strong> Lines • Celebrity <strong>Cruise</strong>s • Costa <strong>Cruise</strong> Lines • Cunard Line Ltd.<br />
Disney <strong>Cruise</strong> Line • Holland America Line • MSC <strong>Cruise</strong>s (USA) Inc. • Norwegian <strong>Cruise</strong> Line<br />
Princess <strong>Cruise</strong>s • Royal <strong>Caribbean</strong> International<br />
Partnerships<br />
Some of the ways the FCCA works with the cruise-oriented destinations include:<br />
• Port Improvements – <strong>The</strong> FCCA provides technical assistance on port expansion, including input on<br />
port and pier design and improvements and new services being planned.<br />
• Research – Research is conducted and provided to destination partners in an effort to create a<br />
better understanding of cruise passengers, improve the landside product delivery and maximize the<br />
benefits of cruise tourism.<br />
• FCCA Outreach Program – FCCA training seminars provide destination partners with valuable<br />
information regarding cruise passengers – their wants, needs and habits – enabling them to maximize<br />
the impact of cruise tourists in their country. <strong>The</strong> FCCA has two core training programs:<br />
• Service Excellence – A workshop on the importance of excellent customer service and the<br />
economic impact of the cruise industry. A happy guest not only spends more money, but will<br />
return again and again, thereby producing greater profits and converting cruise passengers<br />
into return stay-over guests.<br />
• <strong>Caribbean</strong> Taxi Pride – <strong>Caribbean</strong> Taxi Pride: This presentation geared towards taxi<br />
drivers, tour operators and vendors providing ground transportation is an entertaining and<br />
informative workshop that focuses on five main areas: courtesy, professionalism, marketing,<br />
rules and safety.
In addition, the FCCA has designed outreach programs for destination requests, including, but not limited<br />
to, the following areas: Cleaning Beaches/Roads, Painting Schools/Hospitals/Orphanages, Hurricane<br />
Clean-Up, Visiting Elderly, Community Projects and Volunteering at Hospitals.<br />
Associate Membership<br />
<strong>The</strong> FCCA has designed a two-level Associate Membership program, the Platinum Membership program<br />
and the Associate Membership program for destination partners and private organizations impacted by<br />
cruise tourism to foster an even closer, direct working relationship with the FCCA Member <strong>Cruise</strong> Lines.<br />
Associate Member Benefits:<br />
• Member meetings and luncheons<br />
• Listing/profile in Membership Directory and in <strong>Caribbean</strong> Cruising magazine<br />
• Access to up-to-date research and statistical studies<br />
• $500 discount on first ad placed in <strong>Caribbean</strong> Cruising (first year of membership only)<br />
• Savings on registration fees for the FCCA <strong>Cruise</strong> Conference & Trade Show<br />
• Discount on insurance program for tour operators<br />
• Associate Member plaque and yearly updates<br />
• Use of FCCA logo on printed materials<br />
Platinum Associate Member Benefits (in addition to the benefits above):<br />
• One complimentary registration at the $ 300 level for the FCCA Gala Dinner<br />
• One complimentary registration for the FCCA <strong>Cruise</strong> Conference & Trade Show<br />
• Private lunch and meeting at the FCCA <strong>Cruise</strong> Conference & Trade Show<br />
• Serving on FCCA’s Platinum Associate Member Advisory Council (PAMAC)<br />
• Complimentary registration on annual PAMAC <strong>Cruise</strong><br />
• Invitations to inaugural events & cruises<br />
• Complimentary registration for the PAMAC Conference<br />
• Biannual full-day meetings with FCCA operations executives, followed by networking cocktail<br />
receptions (open to all cruise executives)<br />
FCCA Foundation<br />
<strong>The</strong> FCCA Foundation provides a tangible mechanism for the cruise industry to fund a range of humanitarian<br />
causes in the <strong>Caribbean</strong> and Latin America region. In its 15 years of existence, the Foundation has<br />
impacted thousands of <strong>Caribbean</strong> citizens by providing over $3 million in funding to causes and charities<br />
throughout the region. Programs include:<br />
• Holiday Gift Project – <strong>The</strong> FCCA reaches out to the <strong>Caribbean</strong> and Latin American destinations by<br />
providing gifts to children in foster homes or institutions where holiday gifts would not ordinarily be<br />
possible. <strong>The</strong> gifts are delivered on Member Lines’ vessels to the destinations where the children enjoy<br />
a holiday party in their honor. In 2008, 31 destinations participated in the program, with over 7,000<br />
children receiving holiday gifts.
• Foundation Events (every penny raised going to needy causes in the <strong>Caribbean</strong> and Latin America):<br />
• FCCA Online Auction – This project, which takes place in December each year, is open to<br />
anyone with a valid email address. <strong>The</strong> auction allows guests to bid on items ranging from<br />
vacation packages, artwork, jewelry and sports memorabilia donated by cruise industry<br />
partners throughout the <strong>Caribbean</strong> and Latin America.<br />
• FCCA Gala – <strong>The</strong> Gala was created by the Member Lines 15 years ago to enable cruise<br />
executives and industry partners to gather on a social level, establish new relationships and<br />
enhance existing ones. Attendees dine with the cruise executive of their choice, giving them<br />
the opportunity to foster a better relationship with their table host.<br />
FCCA Magazines and Publications<br />
• <strong>Caribbean</strong> Cruising – Published quarterly, <strong>Caribbean</strong> Cruising is the official magazine of the FCCA<br />
and cruise industry that serves to educate and bring about an understanding of the cruise industry’s<br />
inner-workings. With a circulation of over 19,000, the magazine offers advertisers direct access to<br />
over 13,000 travel agents, 5,000 industry partners, and over 1,000 key decision-makers in the marine<br />
operations, marketing and strategic planning departments of the major cruise lines.<br />
• <strong>The</strong> “Highlight Issue” features a who’s who in the cruise industry and contains cruise executive<br />
profiles and information on all FCCA Member Lines. It is a useful tool when dealing directly with the<br />
cruise industry.<br />
• Membership Directory – <strong>The</strong> FCCA directory contains a complete listing of all FCCA Member Lines<br />
executives, FCCA Associate and Platinum members as well as all the Ministers of Tourism within<br />
partner destinations.<br />
• Conference and Gala Program – Delegates who attends these functions receive comprehensive<br />
programs packed with useful FCCA schedules, information and accomplishments.<br />
FCCA <strong>Cruise</strong> Conference & Trade Show<br />
For many cruise executives, destinations, suppliers and tour operators, this is the premier industry event of<br />
the year, an opportunity to meet in a roundtable format with key players to analyze industry trends and discuss<br />
current issues. <strong>The</strong> FCCA Conference brings together over 100 cruise executives and 1,000 industry<br />
partners. For <strong>2009</strong>, the Conference will be held in St. Lucia, October 26-30.<br />
<strong>The</strong> Annual Golf Tournament has become an important resource for meeting top executives in an exclusive<br />
casual atmosphere. Play in a foursome hosted by a <strong>Cruise</strong> Executive and contribute to a worthy cause, the<br />
FCCA Foundation. <strong>The</strong> Golf Tournament will take place on Tuesday, October 27, <strong>2009</strong>.<br />
As the FCCA proceeds into tomorrow, they will remain steadfast in their mission to create win-win partnerships<br />
between the cruise lines and cruise destinations throughout the greater <strong>Caribbean</strong> and Latin American region.
<strong>Cruise</strong> <strong>Industry</strong> <strong>Overview</strong><br />
• <strong>The</strong> industry forecasts 13.5 million passengers in <strong>2009</strong>, a 2.3% increase over 2008.<br />
• In 2008 a record of 13.2 million passengers are forecasted to cruise (a 5% annual increase), with 10.15<br />
million originating in North America.<br />
• <strong>The</strong> cruise industry is the fastest-growing category in the leisure travel market. Since 1980, the<br />
industry has experienced an average annual passenger growth rate of approximately 7.5% per annum.<br />
• Since 1990, over 141 million passengers have taken a 2+ day cruise. Of this number, over 60% of the<br />
total passengers have been generated in the past 10 years and nearly 36% in the past 5 years.<br />
• <strong>The</strong> average length of cruises is nearly 7 days (6.9 days).<br />
• <strong>The</strong> cruise product is diversified. Throughout its history the industry has responded to the vacation<br />
desires of its guests and embraced innovation to develop new destinations, new ship designs, new<br />
and diverse onboard amenities, facilities and services, plus wide-ranging shore side activities. <strong>Cruise</strong><br />
lines have also offered their guests new cruise themes and voyage lengths to meet the changing<br />
vacation patterns of today’s travelers.<br />
• <strong>The</strong> cruise industry’s establishment of over 30 North American embarkation ports provide consumers<br />
with unprecedented convenience, cost savings and value by placing cruise ships within driving<br />
distance of 75% of North American vacationers. By providing significant cost savings through the<br />
convenience of avoiding air travel, the new homeports have introduced leisure cruising to a wider<br />
customer base.<br />
• From a capacity standpoint, utilization is consistently over 100% (104% in 2008).<br />
• <strong>The</strong> <strong>Caribbean</strong> is the number one destination, with 38.19% of capacity in 2008.<br />
• 35 new state-of-the-art new ships are contracted or planned to be added to the North American fleet<br />
through 2012, at a cost of nearly $20 billion US.
<strong>Cruise</strong> Passenger Profile<br />
• CLIA defines the cruiser target market as adults 25 years or older, with household earnings of<br />
$40,000+. This segment represents 43% of the total US population.<br />
• Of the total US population that is 25 years or older, with household earnings of $40,000+, 44.6%<br />
indicates that they have taken a cruise, with 22.7% having cruised in the past three years.<br />
• It is estimated that only 19.9% of the total US population has cruised ever and 9.9% have done so<br />
within the last three years.<br />
• <strong>Cruise</strong>rs spend, on average, approximately $1,770 per person, per week for their cruise and other<br />
vacations as compared to non-cruise vacationers who spend an average of $1,200.<br />
• <strong>Cruise</strong>rs average age is 50 years of age with a household income of $109,000. 69% are college<br />
graduates and post-graduates. 86% are married and 62% work full-time.<br />
<strong>Cruise</strong> Passenger Behaviors & Attitudes<br />
Overall, the cruise product delivers unparalleled customer satisfaction. For both first-time and frequent<br />
cruisers, the cruise experience consistently exceeds expectations on a wide range of important vacation<br />
attributes. <strong>The</strong> on-going challenge for the industry is to convert cruise prospects into new cruisers.<br />
• 80% of cruise passengers think that cruising is an important vehicle for sampling destination areas to<br />
which they may return. <strong>Cruise</strong>rs indicate they return for land-based vacations as follows: <strong>Caribbean</strong><br />
(50%), Bahamas (21%), Hawaii (13%), Mexico (13%), Europe (12%), and Alaska (11%).<br />
• <strong>Cruise</strong>rs are not exclusively cruisers; they are frequent vacationers that cruise as part of their vacation<br />
mix. <strong>The</strong>y average approximately three (2.9) trips each year with 21% of their total vacations being a cruise.<br />
• <strong>Cruise</strong>rs generally plan their cruise trip an average of 5.6 months in advance.<br />
• <strong>Cruise</strong>rs primarily travel with their spouse (75%), followed by children under 18 (25%), friends (23%),<br />
and other family members (21%).<br />
• Internal sources primarily dominate the major influences for both vacations and cruises:<br />
• Destination websites (39%)<br />
• Word of mouth referrals (33%)<br />
• Spouses (32%)<br />
• <strong>Cruise</strong> websites (28%)<br />
Source for the following: CLIA 2008 Market Profile Study
• When comparing cruising to other vacations, cruisers are more likely than non-cruisers to consider<br />
cruising:<br />
• Explore a vacation area to return later (62% vs. 30%)<br />
• Good value for the money (53% vs. 22%)<br />
• Offers something for everyone (59% vs. 31%)<br />
• Reliable (49% vs. 22%)<br />
• Safe (45% vs. 18%)<br />
• Relax/get away from it all (63% vs. 37%)<br />
• Hassle-free (58% vs. 32%)<br />
• Fun vacation (53% vs. 28%)<br />
• About three-quarters (74%) of all cruise passengers book at least some of their cruises through<br />
travel agents.<br />
• For cruise passengers, the largest benefits to having more cruise embarkation points available are:<br />
• Drive-to convenience (71%)<br />
• Cost savings (67%)<br />
• Fewer airport hassles (64%)<br />
• 72% of potential cruisers indicate that having more “close to home” ports will increase their likelihood<br />
of cruising in the next three years.<br />
Most Appealing Destinations to <strong>Cruise</strong><br />
<strong>Caribbean</strong> 43%<br />
Alaska 25%<br />
Bahamas 25%<br />
Hawaii 15%<br />
Mediterranean/Greek Islands/Turkey 14%<br />
Bermuda 11%<br />
Europe 9%<br />
Panama Canal 8%<br />
Mexico (West Coast) 8%<br />
Source for the following: CLIA 2008 Market Profile Study
Criteria for Making Vacation Decisions<br />
<strong>Cruise</strong>rs Non-<strong>Cruise</strong>r-Vacationers<br />
Chance to Visit Several Locations 73% 50%<br />
Being Pampered 62% 45%<br />
Fine Dining 62% 41%<br />
Luxurious 58% 42%<br />
Relax/Get Away From It All 63% 37%<br />
Unique & Different 56% 39%<br />
Variety of Activities 58% 35%<br />
Explore Vacation Area/Return Later 62% 30%<br />
High Quality Entertainment 55% 36%<br />
Hassle-free 58% 32%<br />
Easy to Plan and Arrange 57% 33%<br />
Offers Something for Everyone 59% 31%<br />
Exciting and Adventurous 53% 32%<br />
Fun Vacation 53% 28%<br />
Romantic Getaway 46% 35%<br />
Makes Me Feel Special- Rich & Famous 46% 30%<br />
Good Value for the Money 53% 22%<br />
Reliable 49% 22%<br />
Good Vacation for Entire Family 46% 23%<br />
Cultural Learning Experience 40% 24%<br />
Safe 45% 18%<br />
Comfortable Accommodations 38% 21%<br />
Good Activities for Children 35% 24%<br />
Participate in Sports You Enjoy 22% 16%<br />
Survey Question:<br />
Q11. How do you think cruise vacations compare to other vacations you've taken Are cruises much better,<br />
somewhat better, the same, somewhat worse, or much worse than your other vacations in terms of...
Economic Impact of <strong>Cruise</strong> <strong>Industry</strong> on Destinations<br />
Highlights of the 2006 Economic Impact Study conducted by Business Research & Economic<br />
Advisors (BREA) include:<br />
• <strong>The</strong> analysis of cruise tourism’s direct expenditures shows that the cruise ship calls that<br />
brought 16.3 million passenger and crew visits to the 19 participating destinations during the<br />
2005-2006 cruise year generated $1.8 billion in direct spending by passengers, crew and<br />
cruise lines.<br />
• <strong>Cruise</strong>-related expenditures generated 41,500 jobs throughout the <strong>Caribbean</strong>. <strong>The</strong>se cruise<br />
generated jobs paid $600 million in wage income to <strong>Caribbean</strong> residents.<br />
• Average per cruise passenger spending per port-of-call was $98.01, and average spending per<br />
port-of-call by crew members was $74.56.<br />
• <strong>Cruise</strong> passengers were, in general, very satisfied with their <strong>Caribbean</strong> cruise vacation with<br />
a mean score of 7.2 (Very Satisfied) for “Visit Met Expectations” (Using a 10-point scale with<br />
10 being the highest and 1 being the lowest).<br />
• <strong>The</strong> typical cruise ship carrying 2,000 passengers and 800 crew members conservatively<br />
generates $190,476 in passenger and crew expenditures during a single port-of-call visit.<br />
(Total spending amount is based on 85% of passenger arrivals and 40% crew arrivals)<br />
It is, therefore, clear that the cruise industry’s economic impact in the <strong>Caribbean</strong> region is significant and<br />
continues to grow. <strong>The</strong> Member Lines of the FCCA urge you to carefully analyze all this information and<br />
see for yourself how the cruise industry is positively impacting the economy of your country.<br />
Participating destinations in the 2006 Economic Impact Study included: Antigua, Aruba, Bahamas,<br />
Barbados, Belize, Cayman Islands, Cartagena-Colombia, Costa Maya-Mexico, Cozumel-Mexico,<br />
Curacao, Dominica, Grenada, Key West-FL, Martinique, San Juan-Puerto Rico, St. Kitts, St. Lucia,<br />
St. Maarten and U.S.V.I.
Notes
AVIATION BUSINESS & INDUSTRY COMMERCIAL VESSELS YACHTS MARINE OPERATIONS PRIVATE CLIENT TRANSPORTATION<br />
ROYAL MARINE INSURANCE GROUP<br />
ROYAL MARINE IS NOW<br />
APPROACHING A DECADE<br />
OF PROVIDING THE<br />
PROGRAM TO COVER THE<br />
INSURANCE NEEDS OF THE<br />
FLORIDA-CARIBBEAN<br />
CRUISE ASSOCIATION<br />
THERE ARE THREE SEPARATE<br />
AND DISTINCT COVERAGE’S<br />
OFFERED OF WHICH<br />
SOME OR ALL MIGHT<br />
BE APPROPRIATE DEPENDING<br />
ON THE STRUCTURE OF<br />
YOUR PARTICULAR TOUR.<br />
SHORE<br />
EXCURSION<br />
ALL HAVE THE STANDARD<br />
OPERATORS AND TOUR<br />
SITES UNDERWRITTEN BY<br />
ACE USA RATED “A”<br />
EXCELLENT AND PROVIDING<br />
WORLDWIDE JURISDICTION.<br />
LIMIT OF 2 MILLION DOLLARS<br />
WITH HIGHER LIMITS<br />
AVAILABLE TO 10 MILLION<br />
DOLLARS ALL AUTOMATICALLY<br />
NAMES THE FCCA<br />
CRUISE LINES AS<br />
AS ANFCCA MEMBER YOU ARE ABLE TO ACCESS<br />
THIS INSURANCE PROGRAM DESIGNED AND DEVELOPED<br />
TO PROVIDE TRUE ONE-STOP-SHOPPING FOR THE<br />
INSURANCE COVERAGE’S NECESSARY TO MEET THE<br />
ADDITIONALLY INSURED. THEY ARE GENERAL<br />
LIABILITY, ALSO CALLED THIRD PARTY LIABILITY,<br />
CONTINGENT AUTOMOBILE LIABILITY AND<br />
CONTINGENT WATERCRAFT LIABILITY.<br />
REQUIREMENTS FOR SHORE EXCURSION OPERATORS<br />
DOING BUSINESS WITH THE CRUISE LINES. WHILE<br />
DESIGNED AT THE REQUEST OF THE CRUISE LINES THIS<br />
POLICY COVERS ALL TOURS ALL THE TIME.<br />
YOU ARE INVITED TO VISIT OUR WEB SITE<br />
WWW.RMIG.US FOR ADDITIONAL INFORMATION ON<br />
THE MANY INSURANCE COVERAGE’S AVAILABLE<br />
THROUGH THE ROYAL MARINE INSURANCE GROUP.<br />
IF YOU ARE NOT A CURRENT MEMBER YOU MAY<br />
CONTACT VICTORIA LALTA, FCCA MEMBERSHIP<br />
DIRECTOR AT 954-441-8881 OR GO TO<br />
FOR FURTHER INFORMATION PLEASE CONTACT BILL<br />
ROVERSI AT BILL@RMIG.US<br />
WWW.FCCA.COM AND COMPLETE EVERYTHING ON-LINE.<br />
8300 NW 53 Street, Suite 102 Miami, FL 33166 • 786 364-9811 • Fax 305 477-3858 • 800 926-2811 • www.rmig.us